What must the Hawthorn Suites By Wyndham franchisee confirm with the lender regarding the LNA?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee acknowledges that the LNA shall not be effective and binding on Franchisor unless and until Franchisor receives at its home office in Parsippany, New Jersey an original LNA signed by authorized representatives of the Franchisee and of each member of Lender Group. Franchisor will offer the LNA to Lender Group subject to such condition as to effectiveness. Franchisee undertakes to confirm with Lender at the closing of the Loan, or at such other time as may be requested by Lender (if the Loan has closed prior to the execution of the LNA) that the LNA has been fully executed and sent to Franchisor. Franchisor may, in its sole discretion, withhold its signature and delivery of the LNA until it has received evidence satisfactory to Franchisor that the Loan has closed.
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, a franchisee must confirm with the lender that the Lender Notification Agreement (LNA) has been fully executed and sent to Hawthorn Suites By Wyndham's home office. This confirmation should occur at the closing of the loan or at another time requested by the lender, especially if the loan closes before the LNA is executed. Hawthorn Suites By Wyndham retains the discretion to withhold its signature on the LNA until it receives satisfactory evidence that the loan has been closed.
This requirement ensures that all parties are aligned and that Hawthorn Suites By Wyndham is formally notified and in receipt of the executed LNA. The LNA becomes effective and binding only when Hawthorn Suites By Wyndham receives the original signed agreement from both the franchisee and the lender group at its Parsippany, New Jersey headquarters. This process protects Hawthorn Suites By Wyndham by ensuring that the lender is aware of the franchisee's obligations and the franchisor's rights.
For a prospective Hawthorn Suites By Wyndham franchisee, this means actively managing communication between the lender and the franchisor. It is crucial to follow up with the lender to ensure the LNA has been properly executed and sent to Hawthorn Suites By Wyndham. Failure to do so could delay the effectiveness of the LNA and potentially complicate the financing process. Franchisees should maintain records of all communications and confirmations related to the LNA to demonstrate compliance with this requirement.